What Holds Us Back?

Is there anything that holds us back more than the debt burden that we share?

Not everyone is swimming in debt, but many, many are.

Sometimes debt is a result of some bad decisions. Other times, it’s because you were hit with a sudden disaster, likely medical. And for the others, it’s just the result of the system.

Financial stress holds so many of us back

Our financial system doesn’t reward workers. It is a predator to the poor. Did you know that a national bank can charge as much as 79.9 percent interest on a credit card [1] as long as the issuer fully discloses the terms as required by the federal Truth in Lending Act?

But there is a silver-lining in all of this.

The system stinks but you can overcome it

Arm yourself with the information you need. For example, if you need to take out a loan, the law requires that you know EXACTLY what you are getting into. But presented as a long, near-incomprehensible financial disclosure, you are not encouraged from reading through the terms.

The Truth in Lending Act means that credit card companies need to disclose a lot. This can be a powerful tool for you.

The Truth in Lending Act (TILA) is the primary federal law governing the extension of consumer credit by lenders in the United States. Congress instituted the the Truth in Lending Act in 1968 to ensure more accurate disclosure of credit terms so that consumers could compare the various credit terms available in the credit marketplace, to avoid the uninformed use of credit, and to protect themselves against inaccurate and unfair credit billing and credit card practices. The regulation that implements TILA’s requirements is Regulation Z, which is administered by the Federal Reserve. Under Regulation Z, card issuers are required to disclose the terms and conditions to potential and existing cardholders at various times.

New restrictions on the Credit CARD Act of 2009 even limit the fees credit cards charge on subprime accounts. The problem with these disclosures is that they are often pretty confusing to read, and with absurd fees for the poor, it makes for such a hard way back up through debt. The low-credit, high-cost cards, known as fee harvesting credit cards, are issued to people with bad credit or no credit history and feature credit limits of $500 or less.

But it doesn’t just end with these cards with absurdly high-interest rates – people with great credit are feeling higher interest rates

Interest rates for credit cards are rising across the board. Credit card interest rates can bounce around, but these are the average interest rates for cards as of January 1, 2018, according to CreditCards.com.

Are we heading towards a recession?

The pattern surely seems the same. Household debt increases, wages stagnate, and banks go wild with speculation. I wouldn’t be surprised if we hit our next tipping point in the next year or two. With crypto mania in play, the financial wreckage could be felt even sooner.

The catalyst that bursts this debt balance may be different, but the lead-ups throughout history are in many ways, about the same.

But through all of this, there is an opportunity…

If you can beat the recession to the punch, you have the chance to make a big reset for yourself

This is why I created the ReUp Daily. There are many things that you can do to beat the recession, and so my goal is to find all of the strategies that I can so that you can be prepared for the future.

This isn’t just about economic speculation, housing, or savings. Those are all important, but the lead-up to the recession also presents the opportunity to build an entirely new life for yourself.

ReUp Daily Note: To me given the cycle of booms and recessions that we’ve had for the past century, it’s inevitable we are going to have another recession. It’s always a matter of when at this point. The big banks clearly didn’t learn their lesson. The big banks and the auto companies were bailed out. They’ve behaved better than the banks, I’ll give them credit for that. When will this country not have the money to bail out everyone that screws up the economy anymore? Where does the debt end?

Many Americans don’t have access to opportunities to improve their economic situations. This needs to change!

Even if I can level the field a little bit with the ReUp Daily, I’ll have done my job

Topics on the ReUp Daily include:

Mortgages – since a lot of people own homes, I write a lot about this topic. It’s one of the biggest assets that is connected to the perceived health of the economy. Know how to not dump too much money into having a home. Most of all, don’t let your home be the thing that ruins you when the economy turns south.

Education 2.0 – the stuff you weren’t taught in school. I write about a lot of topics here. When you want to make life changes for yourself, it isn’t just about checking a bunch of boxes. A change in behavior and outlook is required.

Around The Bend – what will you need to look out for? Arm yourself with the most current predictions for 2018 and beyond.

Money – money is your lifeblood. I’m against excess materialism, but you need money for almost everything. So how can you keep your money, be happy, and most of all, protect yourself and those that you love?

Taking care of yourself – you can be rich, you can have everything you want, but without your physical health and mental health steering you, you’re a lifeless husk.

The future shouldn’t be something to fear, but it is something to be prepared for.